master’s thesis · concerning organic wines, the market trends seem to correspond to the ones...
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INSTITUT PAUL BOCUSE, HOSPITALITY AND CULINARY ARTS MANAGEMENT
UNIVERSITETET I STAVANGER, FACULTY OF SOCIAL SCIENCES, NORWEGIAN SCHOOL OF HOTEL MANAGEMENT
HAAGA-HELIA, UNIVERSITY OF APPLIED SCIENCES
MASTER’S THESIS
STUDY PROGRAM: Master's in Culinary Leadership & Innovation
TITLE: THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE
AUTHOR: ADVISOR:PhilomèneBayet-Robert,PhDProgramDirector4thYear&SpecializedMaster’sPrograms
StudentNumber:237090
Name:TimothéeAumont
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 2
The willingness to pay for organic and biodynamic wines in France
Timothée Aumont
Institut Paul Bocuse, Universitetet i Stavanger, Haaga-Helia University of Applied Sciences
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 3
Abstract
In recent years, French consumers are increasingly concerned by environmental issues and
demanding of eco-friendly products. Thus the market of eco-friendly products in France,
including wines, is booming. This quantitative research, based on 172 surveys collected in
France, aims to study the willingness of French consumers to pay for organic and biodynamic
wines, especially to determine the surplus of price that they would be ready to accept for a wine
certified by one of these two labels and to assess the influence of consumers’ socio-demographic
and behavioural characteristics on this surplus. The results show that consumers are
approximatively ready to pay 1 to 10% more for a biodynamic or an organic wine. For both types
of wine labels, the willingness to pay of a consumer is positively correlated to his level of
environmental concern, importance of eco-friendly farming, preference for eco-friendly products
and perception of organic and biodynamic wines. Consequently, for a French consumer, higher is
the level of these variables better will be the willingness to pay. Nonetheless, this willingness to
pay for organic and biodynamic wines is not affected by the gender, the perception of eco-
friendly products, the knowledge in the field of wines, the frequency of purchase and of
consumption of wine, and the knowledge in the field of organic wines.
Keywords: Quantitative research, Organic and Biodynamic wines, Willingness to pay, France.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 4
TABLE OF CONTENTS
Foreword ........................................................................................................................................ 7
Introduction ................................................................................................................................... 8
Literature Review ....................................................................................................................... 11
The Organic and Biodynamic wines ....................................................................................................11
Organic wine. ......................................................................................................................................11
History of the organic label ............................................................................................................................11
Method of viticulture and winemaking ..........................................................................................................12
Certification procedure ...................................................................................................................................13
Biodynamic wine. ...............................................................................................................................14
History of the biodynamic label .....................................................................................................................14
Method of viticulture and winemaking ..........................................................................................................16
Certification procedure ...................................................................................................................................18
The willingness to pay for sustainable products .................................................................................21
Concept of willingness to pay .............................................................................................................21
Previous studies on the willingness to pay for eco-friendly products .................................................21
Method ......................................................................................................................................... 24
Design ......................................................................................................................................................24
Data Collection .......................................................................................................................................25
Secondary data. ...................................................................................................................................25
Primary data. .......................................................................................................................................25
Sample ....................................................................................................................................................26
Data Analysis .........................................................................................................................................27
Results .......................................................................................................................................... 28
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 5
Descriptive Statistics of the survey results ..........................................................................................28
Socio-demographic data. .....................................................................................................................28
Ecology: perception and behaviours. ..................................................................................................30
Knowledge of Biodynamic products. ..................................................................................................32
Wine: knowledge and behaviours. ......................................................................................................33
Organic and Biodynamic wine: knowledge, perception and willingness to pay. ...............................35
The relationship between independent variables and the WTP for both wine labels .....................40
The gender. ..........................................................................................................................................40
The age. ...............................................................................................................................................41
The level of education. ........................................................................................................................43
The concern of environment and eco-friendly methods. ....................................................................45
The importance of eco-friendly farming. ............................................................................................47
The perception of eco-friendly products. ............................................................................................49
The preference for purchasing eco-friendly products. ........................................................................50
The purchasing frequency of eco-friendly products. ..........................................................................52
The level of knowledge in the field of wines. .....................................................................................54
The purchasing frequency of wines. ...................................................................................................55
The frequency of wine consumption. ..................................................................................................56
The level of knowledge in the field of organic wines. ........................................................................57
The perception of organic wine. ..........................................................................................................58
The level of knowledge in the field of biodynamic wines. .................................................................60
The perception of biodynamic wine. ...................................................................................................62
Results summary ...................................................................................................................................64
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 6
Discussion .................................................................................................................................... 66
Comparison with results of previous studies ......................................................................................66
Impacts of the research .........................................................................................................................69
Limits of the research ............................................................................................................................70
Conclusion ................................................................................................................................... 72
References .................................................................................................................................... 74
Appendix ...................................................................................................................................... 81
Appendix A: List of control bodies and control authorities in the organic sector ..........................81
Appendix B: The research “onion” ......................................................................................................84
Appendix C: Survey ..............................................................................................................................85
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 7
Foreword
This thesis represents the final point to my studies in Hospitality & Culinary Management.
This exercise gave me the opportunity to acquire new knowledge about eco-friendly wines but
also to better understand the method of applied research.
I would like to thank the Institute Paul Bocuse, the Haaga-Helia University and the
University of Stavanger for providing me the opportunity to integrate the Master’s in Culinary
Leadership & Innovation and for all the knowledge that I have acquired through this program.
I would specially like to thank my thesis advisor, Madam Bayet-Robert, for all the help, the
consideration and the time that she dedicated to me all along this work. It was a very pleasant
time to work with her and to receive all her advises.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 8
Introduction
In 2016, the organic market in France is worth around 7 billion Euros, while it was only 5.76
billion in 2015, which represents an increase of more than 20% in one year. Moreover, between
2015 and 2016, the number of organic producers increased of 12% and the number of processors,
distributors, importers and exporters engaged in organic field of 10% (Agence Bio, 2017). There
has also been an increase of more than 16% of the organic agricultural surface and the 1.5
million ha has been exceeded (33% in conversion), which represents more than 5.8% of the
French useful agricultural area (Agence Bio, 2016). This boom of the organic market and
production in France responds to the behavioural change of consumers, who seem increasingly
sensitive to the respect of environment and eco-friendly methods. Indeed, the number of French
people who feel concerned about environmentally friendly products and/or the principles of
sustainable development has considerably increased in recent years, from 66% in 2013 to 89% in
2015, to 92% in 2016. Furthermore, about 7 French out of 10 (69%) admitted to consume
organic products at least once a month in 2016, while they were 65% in 2015 and only 37% in
2003. Moreover, the population of daily consumers is also growing, since they were 15% in 2016
against 10% in 2015 and 9% in 2014 (Agence Bio/CSA, 2016).
Concerning organic wines, the market trends seem to correspond to the ones observed for
organic products in general. Indeed, the production and the wine market has been booming in
recent years, the same applies for French behaviour which seems to evolve. In 2015, organic
wines represented 7,5% of the global wine market, which represents an increase of 17% in
relation to 2014 (Didier Perréol – Président de l’Agence BIO, 2017).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 9
Moreover, the area of French organic vineyards has more than tripled in 8 years, from
14,632 hectares in 2007 up to 68,565 hectares in 2015, that is to say 8.7% of the national
vineyard’s surface (Didier Perréol – Président de l’Agence BIO, 2017).
In 2016, about 11% of French people consumed organic wines, however only 15% of
consumers of organic products drank organic wines. Besides, it has been observed that 76% of
consumers of organic wine have been doing it for less than 5 years, which highlights that
enthusiasm for organic wine is relatively recent (Agence Bio/CSA, 2016). At last, young people
(18 to 24 years) seem particularly sensitive to the ecological arguments of organic wines. Indeed,
this age group represents 14% of consumers of organic wines, while it is only 8% of consumers
of conventional wine (Didier Perréol – Président de l’Agence BIO, 2017). According to a study
made by the BIO Agency and the CSA in 2015, one of the main levers to increase the
consumption of organic wine depends on the price, followed by the local aspect and the
availability in store (Agence Bio/CSA, 2015). Furthermore, Lockshin and Corsi have reported
that consumers are not ready to exchange wine’s quality against environmental features, thus
eco-friendly and conventional wines should be sold at the same price (Lockshin & Corsi, 2012).
So today, the eco-friendly certified wines seem to take more and more importance for French
consumers. Besides, the price component appears to play an important role in the purchasing
process of this type of product. In fact, many studies have been conducted on the buying
behaviour and the willingness to pay (WTP) for organic food or beverage products, however
very few studies have been conducted regarding the willingness to pay for organic and
biodynamic wines.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 10
Therefore, this research aims to study the willingness to pay (WTP) of French consumers for
organic and biodynamic wines by determining the surplus of price that they would be ready to
pay for a wine certified by one of these two labels and by assessing how consumers’ socio-
demographic and behavioural characteristics affect this surplus.
From a scientific point of view, the main issues of this research rely on new insights
concerning behaviour and willingness to pay for these two types of wine. As regards all
operators of organic and biodynamic wine (producers, processors, distributors, etc.), this research
will allow them to better understand characteristics of their customers, which could be helpful
for future commercialization, distribution or marketing strategies. Finally, this research will
bring information on the WTP of French consumers for these wines, which will allow operators
to better adapt their price policy to the actual market in order to maximize the number of
consumers and consequently their profit.
In order to fulfil the research objectives, a survey which collect data on the
sociodemographic characteristics, the behaviours and the willingness to pay has been conducted
on Internet, then the results has been analysed by using the software SPSS and Excel (SpSS,
2012). In terms of theoretical framework, this research paper relies on a literature review focused
on the organic and biodynamic labels, and on the concept of willingness to pay. Finally, the main
findings of the research will be discussed and compared with results of previous studies, in order
to underline the main implications and limits of this research.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 11
Literature Review
The Organic and Biodynamic wines
Organic wine.
History of the organic label
The organic farming, and consequently the organic viticulture, is a very specific mode of
production, transformation and management that aims to produce high quality product by mixing
environmental practices, reduction of inputs, high degree of biodiversity and conservation of the
balance of natural resources (Provost & Pedneault, 2016).
Officially recognized by the French public authorities since the agricultural law of 1980, the
organic farming was the object of national specifications before being stated at European level
by the regulation n°2092/91 of the Council of June 24th, 1991 (The Council of the European
Communities, 1991). However, even if the recognition of the organic farming by the European
Community dates 1991, it is only in 2012 that the organic wine is defined by the European
Commission by its regulation R (EU) 203/2012, which became effective on 1st August 2012
(The European Commission, 2012). Consequently, in France, as state of the European Union, the
national label “Agriculture Biologique (AB)” which regulated up to there the biological wine, is
replaced in 2012 by the Eurofeuille label, which guarantees the application of the specifications
of the European Commission.
However, there is today a certain cohabitation between the European and the national label.
This is mainly due to the behaviour and mentality of French consumers, which have difficulty to
evolve, therefore the logo AB remains anchored in their mind, and that despite the
Europeanization of rules for organic producers.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 12
Indeed, according to the barometer Organic Agency/CSA of year 2016, 97% of the French
consumers know the label AB whereas only half of them know about the Eurofeuille label
(Agence Bio/CSA, 2016). Therefore, due to its impact on the purchasing behavior for organic
products, the national label AB, which is facultative, is still present in France on a wide range of
products (food, wine, …).
Method of viticulture and winemaking
Unlike the AB label, which only took into account viticulture and not wine making, the
Eurofeuille label defines and regulates organic wine throughout the process (viticulture and wine
making) and proposes to slightly reduce inputs during the wine making.
The regulation establishes that only products containing at least 95% of ingredients derived
from organic production may bear the European organic logo. This regulation authorizes the
presence of 0.9% of GMOs incidentally or technically unavoidable, in particular in fermentation
grapes, in the products labelled. (The European Commission, 2012).
Regarding the organic production method, it is based on the non-use of synthetic chemical
products (fertilizer, pesticides…), the recycling of organic matter, a sustainable management
system for agriculture (use of compost, moderate work of the ground, long rotation, mechanical
weeding, …) and the respect for the natural balance and biodiversity.
Concerning the transformation process, it is based on the use of biological ingredients,
limited use of additives and the use of environmentally friendly and non-polluting processes.
Finally, during the wine making the only ingredient of vegetable origin which can be used is the
grape (no use of sugar, alcohol...).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 13
Certification procedure
According to the Organic Wine Regulation R (EU) 203/2012, from the harvest of 2012, only
the wines that respect the European specifications of the organic wine-making can bear the
organic mention and display the logo Eurofeuille. For the wines produced before the 1st August
2012, it may continue to be marketed with the words "wine from organic grapes" until stock
depletion, but the use of the European logo is prohibited. Concerning the producers who already
respect the regulation and who can provide supporting documents, it is possible to apply for
retroactive certification. Finally, the producers in organic conversion can claim it through the
mention "wine in conversion to organic farming", on condition of respecting the European
specifications (The European Commission, 2012).
In order to ensure the respect of European specifications, regulations have been put in place
at all steps of the chain. Thus, to obtain organic certification, a winegrower must call upon a
certifying organization, inscribed on the list of organizations or public authorities responsible for
monitoring in accordance with Article 35 (b) of Regulation (EC) 834/2007 (The Council of the
European Union, 2007). For example, in France there are only 9 accredited certifying and control
bodies (see List in Appendix A)
Once the winegrower's request has been made, the organization contacted will send a
contract proposal, including a commitment to respect the organic regulations. In addition, the
organization must control the activity of the operator at least once a year in order to issue a
certificate of compliance (The European Parliament and the Council of the European Union,
2009).
To conclude the Eurofeuille certification is a multiple steps process that includes a request,
annual controls and temporal certifications.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 14
Biodynamic wine.
History of the biodynamic label
Biodynamic agriculture is a system of agricultural production derived from the esoteric
current of anthroposophy, founded by the Austrian scientist and philosopher Rudolf Steiner
(1861-1925) in 1913 (Larousse, 2017). In June 1924, at the request of several farmers and two
German agronomists (Erhard Bartsch and Immanuel Vögele) concerned about the development
of chemical fertilizers and industrial agriculture, Rudolf Steiner presented an Agricultural Course
at Koberwitz Estate in Silesia (present-day Poland) to an audience of farmers, veterinarians and
scientists. Through the 8 conferences which constitute his course, Rudolf Steiner explained the
philosophical and technical bases of an agricultural method, more in harmony with nature, which
he considered as an alternative (Paull, 2011).
From the creation of the method, Rudolf Steiner has tried to develop experimental protocols
in order to adapt in practice and to check the effectiveness of his methods. After his death, these
experiments have continued and have been conducted by an Experimental Circle of
Anthroposophic Farmers. An extensive correspondence is then established between the circle of
participants. Then this correspondence will be relayed by a "Letter," itself replaced in 1927, by a
true periodical. The journal, entitled "Biologisch-Dynamischen Wirtschaftsweise in
Mitteleuropa", was run by the researcher and biologist Ehrenfried Pfeiffer, who was the first
major propagator of biodynamic methods. This concern for experimentation reflects Steiner's
thinking which aims to connect scientific approach and philosophy within the sector of
agriculture (Besson, 2007).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 15
In 1932 in Germany, the Demeter Association was founded in order to support and promote
the biodynamic agriculture. The Demeter Symbol is then introduced, and the first standards for
Demeter quality control formulated (Demeter France, 2017c).
In France, the French Association of biodynamic culture was created in 1958, the Union of
Biodynamic Farming in 1973 and the Movement of biodynamic culture in 1975 (Le Mouvement
de l’Agriculture Bio-Dynamique, 2017). Still in France, the association Demeter France will not
emerge before 1979 (Demeter France, 2017c).
More specifically as regards the world of wine, the International Union of Winegrowers
practicing Biodynamic Farming (SIVCBD: “Syndicat International des Vignerons en Culture
Bio-Dynamique”) and its label Biodyvin have been founded in 1995. This syndicate is composed
of winegrowers exploiting their entire field using biodynamic methods and who claim their
practice through the brand Biodyvin (BIODYVIN Syndicat International des Vignerons en
Culture Bio-Dynamique, 2017).
To conclude, today it is true that one part of the scientific community and some producers
look at biodynamic methods with scepticism and consider them as dogmatic. Nevertheless, a
significant proportion of the results presented in scientific journals have demonstrated the effects
of biodynamic methods on the yield of the vineyard, soil quality and biodiversity (Foissner,
1987; Goldstein, 1986; Reganold, 1995).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 16
Method of viticulture and winemaking
The biodynamic agriculture does not advocate a return to nature, but promotes understanding
of the laws of nature in order to better respect them in agricultural practices. Thus, the
winegrowers who use this method try to intensify the life of the soil in order to improve
exchanges between the land and plants.
Nowadays, many consider biodynamic practices to be more stringent and rigorous than
organic practices (McCullough, Qenani, & MacDougall, 2012). We can almost consider that the
biodynamic method is built on the organic method while going further. Indeed, many practices
are common to both methods, as the use of compost, the long rotations, the moderate work of the
ground, the mechanical weeding, the prohibition of synthetic pesticides and fertilizers.
However, the biodynamic system differs from organic system in several points. Firstly, in a
biodynamic operation, farming practices are based on the following six principles: biodiversity,
crop rotation, homeopathic fertilizers, use of compost, animal life and natural cycles (seasonal,
planetary, lunar, zodiacal) (Delmas, 2010). We can notice through these pillars that biodynamic
method distinguishes itself by taking into account all natural energies and organisms as well as
the rhythm of the nature and the astral influences. Furthermore, the use of homeopathic
fermented herbal preparations is also one of the specific characteristics of biodynamic farming
(BIODYVIN Syndicat International des Vignerons en Culture Bio-Dynamique, 2017). These
plant preparations, developed on the basis of information provided by Rudolf Steiner, aim to
stimulate, rebalance and revitalize the plant and the ground rather than to feed or treat it. There
are a total of eight preparations, six preparations have to be added to the compost, while the
seventh has to be sprayed on the soil and the last one directly on the plants during the growth
(Carpenter-Boggs, Kennedy, & Reganold, 2000).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 17
Secondly, “while organic farming methods focus on eliminating pesticides, growth
hormones and other additives, biodynamic farming emphasizes creating and managing a self-
sufficient and healthy ecosystem” (Delmas, 2010). Thus, with the biodynamic method, the farm
is considered and managed as a whole living organism where everything is interconnected and
self-sufficient (McCullough et al., 2012).
Thirdly, even if both organic and biodynamic methods avoid the use of chemical fertilizers,
they are distinguished by the purpose and the rigor of this practice. Indeed, while organic
farming aims to establish sustainable agricultural production by minimizing external inputs and
avoiding industrial products, although it allows them under certain conditions, biodynamics aims
to produce healthy plants by prohibiting the use of soluble fertilizers and pesticides, whether
natural or not. Thus biodynamic method only allows composts of plant or animal substances that
can be decomposed by the living organisms present in the compost (Le Parisien, 2017).
It is also important to note that during wine making, the biodynamic method allows the
sticking of wine, the filtration, industrial yeasts and the chaptalisation (addition of sugar) but
only for sparkling wines. However, the use of sulphur is more limited than for organic wines and
conventional wines. For example, for red wine, conventional vinification allows 160mg/L of
sulphur according to European standards and 100mg/L of sulphur for Eurofeuille label, versus
70mg/L in biodynamic vinification (Demeter France, 2017c).
To conclude, the final objective of the biodynamic method lies in the suppression of all
oenological inputs and practices that aim to modify the natural equilibrium of grapes. In other
terms, Biodynamic farming promotes a production without addition, withdrawal and
modification (BIODYVIN Syndicat International des Vignerons en Culture Bio-Dynamique,
2017).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 18
Certification procedure
For biodynamic wine, there is no European regulation. The two important certifiers that
regulate the production of biodynamic wines are Demeter and Biodyvin. It is important to note
that both organizations require that the wines be certified Eurofeuille according to European
regulations (Demeter France, 2017c). Consequently, the fields must respect the European
specification and the specification, which is more exigent (less inputs authorized, more
winemaking regulations, ...), of the biodynamic labels.
- The Demeter label
Unlike the Biodyvin label, Demeter certification covers a wide range of raw agricultural
products (fruits, vegetables, cereals, meat, etc.) and processed products (food, cosmetics,
textiles). The International Demeter Standards, that ensure respect for biodynamic principles in
agricultural areas and during the processing of products, have been created in 1992 (Demeter
International, 2017). It is important to note that Demeter requires the total conversion of the
domain to the biodynamic practices, thus the mix in terms of farming methods is not authorized
(Demeter France, 2017a).
Concerning the wine making, Demeter proposes three types of certification:
- “Demeter wine” or “Biodynamic wine”: concerns wines vinified according biodynamic
practices.
- "Wine derived from Demeter grapes": concerns wines produced from certified biodynamic
grapes. However, there is no restriction for winemaking.
- “Under conversion to Demeter”: concerns domains that have started their conversion and
that respect the Demeter’s regulation (Demeter France, 2017a).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 19
For the winemakers who wish to obtain the Demeter’s certification, this requires a
conversion period. This period varies according to the age of the European organic certification.
Indeed, if the vineyard is not certified organic, the conversion will have to last three years.
However, if the domain has already started its conversion to organic farming or has been
certified organic for more than 3 years, the conversation period will be reduced. In addition to
this conversion period, winegrowers will have to take part in a technical training on biodynamic
practices with an agency recognized by Demeter (Demeter France, 2017b).
Lastly, as for the Eurofeuille certification, a control of all operators is carried out annually in
order to ensure the respect of the biodynamic rules. This control is made by Demeter’s
controllers or by controllers from an independent organisms mandated by Demeter (In France:
Ecocert, Agrocert and Certipaq) (Demeter France, 2017b).
- The Biodyvin label
It is only in 1998 that members of the International Union of Winegrowers practicing
Biodynamic Farming (SIVCBD) decided to draft specifications that all farms must respect to
claim the Biodyvin label. In 2002, the SIVCBD, in a quest for impartiality, has decided to call on
an external auditing agency in order to verify the practices of its members. Thus the company
Ecocert (one of the leaders of organic certification in France) becomes the main partner of the
SIVCBD (BIODYVIN Syndicat International des Vignerons en Culture Bio-Dynamique, 2017).
In order to obtain the Biodyvin label, winegrowers must commit themselves in a certification
process that lasts four years. It is only at the end of this period of conversion that the SIVCBD
issues the label, unless the domain has already been certified by Demeter for 3 years, in this
particular case there is no conversion period.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 20
The conversion process is carried out in 3 main steps. The first one is an interview with the
SIVCBD's management committee, which aims to judge the practices in place within the field
and to ensure the motivation of the winemaker. The second stage, which will be renewed each
year of conversion, is a tasting. The objective of this tasting is not to judge the intrinsic quality of
wine but rather to understand the work performed and its impact on wine. It is only after the
validation of those two firsts steps that the field will be accepted in first year of conversion.
Finally, the third step lies in the participation to annual exchange meetings and trainings
organized by the union. Thus, each member must observe his activity in order to detect possible
improvements that could be brought to the biodynamic method. The aim is to be able to
continuously improve the method and to allow members to improve themselves by exchanging
their observations (BIODYVIN Syndicat International des Vignerons en Culture Bio-
Dynamique, 2017).
To conclude, as for the Eurofeuille certification, both Biodynamic certifications are done
through a multiple steps process that includes respect of specifications, inspections and yearly
renewal (McCullough et al., 2012).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 21
The willingness to pay for sustainable products
Concept of willingness to pay
The concept of willingness to pay (WTP), appeared in the Economic Literature in 1902
(Davenport, 1902), has been defined as the maximum price that a purchaser is ready to pay for a
given quantity of a product or a service (Kalish & Nelson, 1991; Kohli & Mahajan, 1991;
Wertenbroch & Skiera, 2002). Consequently, the WTP allows to express, in a monetary unit the
value or the utility that a buyer attributes to the consumption of a product or service. Thus, more
important is the utility or value conferred by the consumer to the product’s consumption higher
is the price that he is ready to pay (Le Gall-Ely, 2009).
The willingness to pay mainly depends on the product attributes, the consumers socio-
demographic characteristics and others external factors that have a direct or indirect influence on
the product’s choice. Thus, the WTP will vary according to these different factors and any
change brought to these factors will have a direct impact on the WTP (Cranfield & Magnusson,
2003). Consequently, being able to measure the WTP and to know the factors influencing it
allow to fix the price according to the demand in order to optimize turnover, margin or even
market share (Le Gall-Ely, 2009).
Previous studies on the willingness to pay for eco-friendly products
Numerous studies have examined consumer willingness to pay for eco-friendly products, and
especially for the organic and pesticide free food. For example, in 1991, the researchers Misra,
Huang and Ott determined that most of the consumers were not ready to pay a higher price for
pesticide-free fresh product. Indeed, most respondents (54%) of the survey respondents were not
ready or not sure to pay a higher price.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 22
Moreover, 87% of the respondent who were ready to pay a higher price were willing to pay at
most 10% more for certified pesticide-free fresh product (Misra, Huang, & Ott, 1991). In 1995,
Bagnara founds that 52% of the respondents were willing to pay a higher price, but most of them
were willing to pay only 20% more (Bagnara, 1995). A study carried out by Hutchins and
Greenhalgh in 1997, shows that half of the consumers were willing to pay more for organic food
products and most of them were ready to pay between 10 and 20% more (Hutchins &
Greenhalgh, 1997). While in 2001, Boccaletti and Nardella founds that 72% of the respondents
were not willing to pay more than 15% of premium for pesticide-free fruits and vegetables while
11% of the respondents were not willing to pay more (Boccaletti & Nardella, 2000). Finally, the
Cranfield and Magnusson’s study in Canada indicates that about 67% of respondents would be
willing to pay 1 to 10% more for pesticide free food products, while only 5% of respondents
would be ready to pay more than 20% of price premium (Cranfield & Magnusson, 2003). To
summarize, research’s results have shown that consumer WTP for eco-friendly products is about
1 to 20% more than for conventional products.
Nonetheless, it has been found that several consumers’ socio-demographic and behavioural
characteristics affect the WTP for this type of products. First of all, it appears that consumers
who are concerned by the environment are more likely to pay a higher price for organic. Indeed,
in 2000, the study conducted by Gil, Garcia and Sanchez in Spain indicates that consumers who
feel concerned by environmental deterioration are more willing to purchase organic foods at a
higher price (Gil, Gracia, & Sanchez, 2000). This is in accord with Cranfield and Magnusson’s
results, in 2003, which suggest that consumers who feel concerned by the impact of pesticides on
the environment and who pay attention to sustainable agricultural production are more likely to
pay a higher price for pesticide-free fresh food products (Cranfield & Magnusson, 2003).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 23
Moreover, a study made in 2009 reveals that the level of environmental knowledge also
influences positively the willingness to pay for sustainable wines (Barber, Taylor, & Strick,
2009).
Secondly, the WTP appears to vary according to gender of the consumer. Thus, according to
several studies, men seem to be less likely to pay a premium price for environmental
characteristics than women (Boccaletti & Nardella, 2000; Cranfield & Magnusson, 2003;
Loureiro, 2003).
Thirdly, the age of consumers has also an impact on the willingness to pay for sustainable
products. However, the literature seems to be divided concerning the relation between age and
WTP. Indeed, Cranfied et al. have demonstrated that respondents over 65 years are more willing
to pay no premium or a small premium than respondents under 65 years (Cranfield &
Magnusson, 2003). Whereas, Misra et al. have found in their study of 1991 an highest level of
WTP within consumers who are over 60 years (Misra et al., 1991).
Finally, contradictory results have been found concerning the relation between the WTP for
eco-friendly products and the level of education of the consumers. Indeed, while some authors
found that the WTP increases with higher level of education (Cranfield & Magnusson, 2003;
Jordan & Elnagheeb, 1991; Van Ravenswaay & Hoehn, 1991) others have found an inverse
correlation between WTP and level of education of consumers (Boccaletti & Nardella, 2000;
Buzby, Skees, & Ready, 1995; Malone, 1990).
To conclude, these studies reveal that there is a relation between socio-demographic
characteristics of a consumer and his WTP for eco-friendly products, however the nature of this
relation is still questionable.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 24
Method
Design
According to the Dictionary of Statistics & Methodology of Paul Vogt and Burke Johnson,
the research design consists in the art and science of planning processes used to carry a study, in
order to find the most reliable and relevant results (Vogt & Johnson, 2011). The design of this
research follows the steps proposed by Saunders, Lewis and Thornhill in their concept of
research “onion” (Saunders, 2011). Knowing that, each layer of the onion represents a step of the
research process, this concept illustrates a system of progression that allows to build a research
successfully (see Figure Research Onion in Appendix B).
Figure 1. Research Design
This research follows a deductive approach with the post positivism philosophy. Indeed, it
starts from a theory, then collects data that support or contradict this theory and finally conducts
an experiment which aims to measure and analyse numerically the characteristics and behaviours
of a sample. The objective is to extend the results to an entire population and to confront them to
those found in previous researches. Nonetheless, the post positivism philosophy leads to a certain
relativism, thus even if the results of this type of studies are valid and relevant, it is considered
that the absolute truth cannot be found, given that many variables are not taken into
consideration (EduTech Wiki; Research Methodology).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 25
The research used a quantitative method as it is based on a survey that collects data
regarding socio-demographic, behavioural and willingness to pay characteristics of a sample of
the French population.
Research will be descriptive because it aims to describe characteristics and phenomenon
observed within the population studied, but it is also analytic as results will be compared to those
of previous studies. (DifferenceBetween.com, 2012)
Time horizon of the study is cross-sectional, as it involves an analysis of a survey conducted
at a specific time (interval of 10 days), without manipulating the independent variables or the
environment (Cherry, 2017).
Data Collection
Secondary data.
Secondary data has been gathered within the literature review. This review is composed of
reports, publications, regulations, specifications, newspapers and internet articles.
Primary data.
A survey, inspired from similar previous researches, has been built in order to collect
information on the profile of participants and to identify some of their consumption behaviours
for eco-friendly products and for wines, especially the willingness to pay for wines certified
organic or biodynamic.
The survey, available in Appendix C, is structured in six parts. The first part, questions 1 to
3, collects information about socio-demographic characteristics, such as gender, age and level of
education.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 26
The second part, questions 4 to 8, is related to the environmental perception and consumption of
eco-friendly products. The third one, questions 9 and 10, investigates about knowledge of
biodynamic method and products. The fourth part, questions 11 to 14, is related to the knowledge
and consumption of wines. The two last parts, questions 15 to 18 and 19 to 22, gather questions
about knowledge, perception and willingness to pay for organic and biodynamic wines.
Sample
The survey has been sent by mail, the 30th April 2017, to a maximum of French people
issued from my own network (family, collaborators, friends, etc.), but also to the students of the
Institute Paul Bocuse. Moreover, it has been put online, from the 30th of April to the 9th of May
(10 days), through social medias, as Facebook or LinkedIn. This sampling technic can be
assimilated to the snowball sampling, given that any participants can share or send the survey via
mail or social media to their friends or to any potential respondents. This method has been
chosen because it helps to increase the number of answers while being easy to put in place.
However, the main drawbacks of this technique consist in the fact that we cannot ensure the
representativeness of the sample and that people who are not connected to internet or social
media cannot participate.
After 10 days, I received 198 answers to my survey, however a review of these data has
revealed that 26 surveys were not usable because of a constituency problem (e.g. Some people
answered “No” to the question “Are you ready to pay a premium price for organic label”, but
they specified in the following question that they will be “ready to pay 6 to 10%” more for this
label, which is clearly incoherent).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 27
Consequently, these 26 surveys have been removed and only 172 surveys (86,8% of the total
number of answers) have been taken into account for the research.
Data Analysis
The data analysis has been made by using the software SPSS (SpSS, 2012) and Excel, and it
is composed of two main parts. The first part gathers the descriptive statistics (with cross-
tabulation) of the answers of the survey. The second one consists in the analysis of the
relationship, using the Pearson’s Chi Square and Correlation, between the independent variables
and the dependent variables (see Figure 2). The objective is to determine if the independent
variables affect the premium price that respondents will be ready to pay for a wine certified
organic or biodynamic instead of a conventional one.
Figure 2. Independent and Dependent Variables
Independent variables
- Gender - Age group - Level of education - Concern of environment and eco-friendly products - Importance of eco-friendly farming - Perception of eco-friendly products - Preference to buy eco-friendly products - Frequency of purchase of eco-friendly products - Level of wine knowledge - Frequency of purchase of wines - Frequency of wine consumption - Level of organic wine knowledge - Perception of organic wines - Level of biodynamic wine knowledge - Perception of biodynamic wines
Dependent variables
- Willingness to pay for
organic wines - Willingness to pay for
biodynamic wines
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 28
Results
Descriptive Statistics of the survey results
Socio-demographic data.
Table 1. Descriptive Statistics – Socio-Demographics Questions
In Table 1, we observe that the sample seems more or less well proportionate in terms of
gender, even if there are few more women (102) than men (70).
Concerning the age, more than half of the panel is between 18 and 25 years old (56,4%), this
may be explained by the fact that surveys have been sent to my personal network, which is
principally constituted of people around my age. Furthermore, the survey has been published
through social media, in which the millenniums are usually more active than older people, and
sent by mail to the students of the Institut Paul Bocuse, where most people are under 25 years
old. We can also notice that only 4 respondents (2,33%) are over 65 years, which could be
explained by the reasons mentioned above.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 29
Regarding the level of education, only few respondents do not have any diploma (3) or only
secondary school diploma (9) while most respondents have university degrees (1st cycle: 71, 2nd
cycle: 58, 3rd cycle: 31). The important presence of interviewed people with a degree of 1st and
2nd university cycles might be explained by the fact that the survey was sent by mail to the
students of a university school.
To conclude, it is important to notice that both genders are well represented in the sample,
nevertheless there is a high number of young people (between 18 and 25 years old) and a strong
presence of people who have followed university studies.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 30
Ecology: perception and behaviours.
Table 2. Descriptive Statistics – Ecology perception and behaviours
Table 2 presents descriptive statistics of the answers to the questions concerning the
respondents’ behaviours towards eco-friendly methods and products. Thus, more than half of the
interviewees (57,56%) feel concerned by the environment and eco-friendly methods, and 26,74%
feel strongly concerned. Whereas 14,53% have a neutral position and only 1,16% of the
participants do not feel concerned.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 31
Concerning the eco-friendly farming, it seems important for a majority of respondents.
Indeed, 51,74% of the people surveyed think that eco-friendly farming is important and 23,84%
say that it is very important. However, 17,44% feel that it is moderately important, and 4,65%
consider it of few importance and 2,33% not important at all.
Moreover, a large majority of participants perceive positively the eco-friendly products (149
in 172 respondents), whereas only 2 respondents perceive them negatively and 21 neutrally.
Concerning the preference of purchasing Eco-friendly labelled product, the interviewees
seem generally to agree (50%) and 26,16% strongly agree. Nevertheless, 18,02% of the
respondents adopt a neutral position, while 4,07 % disagree and 1,74% strongly disagree.
As regards the purchasing frequency of eco-friendly products, more than half (65,7%) of
interviewed persons admit buying weekly eco-friendly products (27,33% do it several times a
week and 38,37% once a week). A significant part of the participants (19,19%) admit buying
this type of products at least once a month, whereas 15,12% of respondents rarely buy it (11,05%
less than once a month and 4,07% less than once a year/never).
In conclusion, the eco-friendly products and methods seem to be well anchored in the mind
of the people who were interviewed. Indeed, 84,3% of the sample feel at least concerned by the
environment, 86,63% perceive positively the eco-friendly products and only 6,98% say that eco-
friendly farming is not very important. Finally, 76,16% prefer to buy eco-friendly products and
65,7% do it at least once a week.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 32
Knowledge of Biodynamic products.
Table 3. Descriptive Statistics – Knowledge of Biodynamic products
Thanks to descriptive statistics of the Table 3, we can observe that 80 people know
biodynamic products while 92 people do not. Besides, only 68 people know the difference
between biodynamic and organic products.
Consequently, 15% (12 respondents in 80) of the people who hear about biodynamic
products do not make any difference between this type of products and the organic products.
Thus, less than half of the interviewees know what is biodynamic products (46,51%) and only
39,53% of the respondents know how to differentiate biodynamic and organic products.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 33
Wine: knowledge and behaviours.
Table 4. Descriptive Statistics – Wine knowledge and behaviours
Table 4 allows us to identify the characteristics and the attitudes toward wine of the
interviewed persons. Thus, almost half of the participants have an intermediate level of
knowledge of wine (44,19%), while 33,72% admit to have an advanced level. Besides, 19,19%
admit to be novice and only five respondents (2,91%) consider themselves as experts in this
field.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 34
Regarding the purchase frequency, more than half of the sample (57,56%) buy wines at least
once a week (Once a week: 42,44% and Several times a week: 15,12%), whereas 30,23% admit
to buy it once a month. To finish, 9,30% of the people who were interviewed purchase wine less
than once a month and only 2,91% do it less than once a year.
For the frequency of wine consumption, we can observe that a large part of the panel
(84,31%) drinks wine at least once a week. In the other side, almost 10% of interviewees
(9,88%) drink wine monthly and 5,81% do it less than once a month (Less than once a month:
4,65% and Less than once a year/Never: 1,16%).
Concerning the question about the most important characteristic that influences the choice of
wine, we can notice that the sample seems to be divided between the criterion Grape variety
(35,47%) and the Origin (47,09%). The price criterion comes in third position with 14,53%,
whereas the Age (2,33%) and the Eco-friendly label (0,58%) only represent 2,91% of the
answers.
To conclude, the sample seems highly sensitive to the wine in general. Indeed, 80,82% of
people report to have an intermediate or better level of wine knowledge. Besides, a large part of
the interviewees admits to buy (57,56%) and to drink wine (84,31%) at least once a week. To
finish, the origin and the grape variety of the wine seem to be the most important criteria when
respondents have to choose their wines, but the price seems to be also an important characteristic
for one part of the people interviewed.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 35
Organic and Biodynamic wine: knowledge, perception and willingness to pay.
Table 5. Descriptive Statistics – Organic wine Questions
Table 6. Descriptive Statistics – Biodynamic wine Questions
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 36
The analysis of tables 5 and 6 shows a small difference between the organic and the
biodynamic wine knowledge. It seems that participants have a better knowledge of organic wine
than biodynamic. Indeed, 50 participants have admitted to be better than novice in the organic
wine field, for only 39 for biodynamic wines. In order to identify if this difference of level of
knowledge, I have conducted on SPSS a Cross-tabulation with Chi-Square analysis of this two
variables. The results, presented in the Table 8, show that this difference of knowledge is
significant (Pearson Chi-Square = 162,45; df = 9; p = 0,000 < 0,05).
Table 7. SPSS Cross-tabulation & Chi-Square Tests – Organic/Biodynamic Wine Level of Knowledge
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 37
For the perception of the two wine labels, we can notice a large difference of opinion within
the panel. Indeed, 115 participants out of 172 (66,86%) perceive positively organic wines
whereas only 84 participants (48,84%) perceive positively the biodynamic ones (see Table 5 and
6). Moreover, one interviewee out of two (50%) has no opinion on biodynamic wines, which is
probably due to the fact that a majority of respondents do not know exactly what are biodynamic
products (see Table 3). As for the difference between level of knowledge for both labels, I made
a cross-tabulation and Chi-square tests (see Table 8) to validate or not the significance of this
difference of perception. Thus, results show that this difference of perception is significant
(Pearson Chi-Square = 30,295; df = 4; p = 0,000 < 0,05).
Table 8. SPSS Cross-tabulation & Chi-Square Tests – Organic/Biodynamic Wine Perception
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 38
Regarding the willingness to pay a premium price for having a wine labelled organic or
biodynamic, we can see that people interviewed appear to be more ready to pay a higher price for
organic label (72,67% of the sample) than for biodynamic label (66,86%) (see Table 5 and 6).
Thanks to cross-tabulation and Chi-Square tests (see Table 9), we can admit that this difference
of willingness to pay a premium price is significant (Pearson Chi-Square = 85,410; df = 1; p =
0,000 < 0,05).
Table 9. SPSS Cross-tabulation & Chi-Square Tests – WTP surplus for Organic/Biodynamic Wine
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 39
Regarding the answers concerning the amount of the surplus that they will be ready to pay,
there is a significant difference between organic and biodynamic (Pearson Chi-Square =311,062;
df = 16; p = 0,000 < 0,05; see Table 10). Indeed, there are more respondents ready to pay 1 to
5% (48 people for organic against 42 for biodynamic) or 6 to 10% (63 people against 55) more
for a wine certified organic than for a biodynamic wine (see Table 5; 6 and 10). Nonetheless, it is
important to notice that 10,47% of respondents are ready to pay more than 11% of premium
price for having a wine certified biodynamic, whereas only 8,14% will accept to do it for organic
wine (see Table 5 and 6). Finally, when we observe the correlation we find that there is a strong
significant and positive relationship between these two variables (Pearson Correlation= 0,76;
Sig.(2-tailed) = 0,000 < 0,05). Therefore, more the amount of surplus that participants are ready
to pay for organic wine increases, more the surplus for biodynamic wine increases and vice
versa.
Table 10. SPSS Cross-tabulation, Chi² & Correlation – % of surplus for Organic/Biodynamic Wine
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 40
The relationship between independent variables and the WTP for both wine labels
The gender.
Table 11. SPSS Cross-tabulation & Chi² – Gender & WTP Organic/Biodynamic Wine
By observing the Table 11, we can notice that for both labels there are some differences of
willingness to pay depending on the gender of participants. However, the Chi-Square Tests
reveal that for organic (Pearson Chi-Square= 5,166; df= 4; p = 0,271 > 0,05) and biodynamic
labels (Pearson Chi-Square= 4,914; df= 4; p = 0,296 > 0,05), the difference of WTP between
male and female is not significant. Therefore, we can assume that the gender of a respondent
does not affect the willingness to pay for these wine labels.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 41
The age.
Table 12. SPSS Cross-tabulation & Chi² – Age & WTP Organic Wine
Table 13. SPSS Crosstab, Chi², Contingency Evaluation & Person’s Correlation – Age & WTP Biodynamic Wine
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 42
Table 12 shows that there is not significant difference, according to the age group, in terms
of amount of surplus that participants will be ready to pay for a wine certified organic (Pearson
Chi-Square= 17,01; df= 12; p = 0,149 > 0,05). Consequently, there is no relationship between the
age of participants and the willingness to pay for an organic wine.
Thanks to Table 13, we can notice that there is a significant difference of willingness to pay
for biodynamic wines depending on the age of the respondents (Pearson Chi-Square= 29,756;
df= 12; p = 0,003 < 0,05). Thus, it appears that participants who are “18-25 years old” are less
likely to pay a premium price for organic characteristics, given that 44,3% (43 out of 97) of them
are not ready to pay more, while the same patterns are observed for only 30,8% of 26-40 years (8
out of 26), 11,1% (5 out of 45) of 41-65 years old and 25% of over 66 years (1 out of 4).
Moreover, when respondents from the youngest age group are principally not ready to pay more,
the biggest part of people with more than 41 years old admit to be ready to pay 6 to 10% more
for having a wine certified biodynamic (41-65 years old: 57,8%; Over 66 years old: 75%).
Concerning participants with 26-40 years old, most of them are not ready to pay more or ready
(30,8%) to pay 1 to 5% more (30,8%).
The results of the contingent valuation show that there is a moderate relationship between
age and likelihood to pay a surplus which is not due to coincidence (Contingent Coefficient=
0,384; p= 0,003 < 0,05). Furthermore, results of the Pearson’s correlation show that there is a
moderate positive correlation, which is significant, between age of the participants and amount
of surplus that they will be ready to pay for a wine with biodynamic characteristics, therefore the
older is a respondent, the higher is the amount of surplus that he will be ready to pay (Pearson’s
R= 0,221; p= 0,004 < 0,05).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 43
The level of education.
Table 14. SPSS Cross-tabulation & Chi² – Level of Education & WTP Organic Wine
Table 15. SPSS Crosstab, Chi² & Correlation – Level of Education & WTP Biodynamic Wine
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 44
Concerning the level of education and the WTP for organic wines (see Table 14), the results
analysis shows that there is no significant difference of WTP between the levels of education
(Pearson Chi-Square= 15,525; df= 16; p = 0,487 > 0,05). Therefore, we can conclude that the
level of education does not influence the answer to the question concerning likelihood to pay a
surplus for a wine certified organic compared to conventional one.
The results presented in Table 15 show that all respondents (100%) without diploma and
almost half of participants (44,4%) with secondary school degree are not ready to pay a premium
price for a biodynamic wine. Considering interviewees that have done university studies at 1st or
2nd level, the majority of them (63,4% of 1st cycle and 63,8% for 2nd cycle) is ready to pay a
premium price and the amount of surplus seems to oscillate between 1 and 10%, given that this
interval gathers 55% of respondents from 1st cycle and 46,6% of the 2nd cycle. To finish,
participants with the highest degree (University studies 3rd cycle) are almost all ready to pay a
premium price (90,3% of them) and the amount of surplus seems to be situated between 6 to
10% as this price range gathers 64,5% of this segment of population.
The Chi-Square analysis shows that this difference of WTP for biodynamic wines according
to the level of education is significant (Pearson Chi-Square= 30,686; df= 16; p = 0,015 < 0,05).
Finally, the Pearson’s correlation shows that there is a significant and positive relation between
the level of education and the amount of surplus that respondents are ready to pay for this type of
wine (Pearson’s R= 0,211; p= 0,005 < 0,05). Consequently, the higher the education level of an
interviewee is, the higher the amount of surplus that he is ready to accept for biodynamic wines
will be.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 45
The concern of environment and eco-friendly methods.
Table 16. SPSS Cross-tabulation, Chi² & Pearson’s Correlation – Environment Concern & WTP Organic/Biodynamic Wines
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 46
Results presented in Table 16 show that there is, for both wine labels, a significant difference
of WTP according to the level of concern for environment and eco-friendly methods (Organic
Label: Pearson Chi-Square= 30,374; df= 12; p = 0,002 < 0,05 / Biodynamic Label: Pearson Chi-
Square= 21,352; df= 12; p= 0,045 < 0,05). Thus, respondents who feel not concerned or who
adopt a neutral position are less likely to pay a surplus for a wine certified by one of these labels.
Indeed, for organic wines, all respondents who feel not concerned and almost half (44%, 11 out
of 25) of respondents with a neutral position are not ready to pay a surplus. Whereas, only 28,3%
of participants who feel concerned and 13% of those strongly concerned adopt the same attitude.
For biodynamic wines, the same pattern is observed, given that all interviewees not concerned
and 48% of those with a neutral position are not ready to pay a surplus, while it is the case for
only 36,4% of people concerned and 15,2% of those strongly concerned.
Furthermore, the Pearson’s correlations show that, for both wine labels, there is significant
and moderate relationship between the WTP and the respondent’s level of concern about
environment and eco-friendly methods (Organic Label: Pearson’s R= -0,366; p= 0,000 < 0,05). /
Biodynamic Label: Pearson’s R= -0,310; p= 0,000 < 0,05). Results indicate, for both cases, that
the correlation is negative, this is due to the fact that answers to the environmental concern
question are coded in the opposite way (“1” = “Strongly concerned” => Highest level of concern
and lowest score; “4” = “Not concerned” => lowest level of concern and highest score).
Therefore, the software indicates that the higher the participant’s level of concern is, the higher
the amount of surplus that he is likely to pay for an organic or biodynamic wine is.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 47
The importance of eco-friendly farming.
Table 17. SPSS Cross-tabulation, Chi² & Pearson’s Correlation – Importance of Eco-friendly farming & WTP Organic/Biodynamic Wine
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 48
Table 17 shows that, for both types of wine, there is a significant difference of WTP
according to the level of importance attributed to the eco-friendly farming (Organic Label:
Pearson Chi-Square= 43,650; df= 16; p= 0,000 < 0,05 / Biodynamic Label: Pearson Chi-Square=
37,618; df= 16; p= 0,002 < 0,05). Indeed, participants who consider eco-friendly farming as
being a bit, moderately or not important are less willing to pay a surplus for having one of these
wines than those who consider it as important or very important, since all respondents who
consider it not important and half of those who consider it a bit important (4 out of 8 for Organic;
5 out of 8 for Biodynamic) or moderately important (15 out of 30 for Organic; 18 out of 30 for
Biodynamic) are not ready to pay more. Whereas, more than two thirds of interviewees who
consider it important (78,7% for Organic and 73% for Biodynamic) and more than 85% (87,8%
for Organic and 85,4% for biodynamic) of those who consider it very important are ready to pay
a higher price for an organic or biodynamic wine.
These trends are confirmed by the results of the Pearson’s correlations, given that it shows
for both labels that there is a significant and moderate correlation between WTP and level of
importance of eco-friendly farming (Organic Label: Pearson’s R= -0,414; p= 0,000 < 0,05) /
Biodynamic Label: Pearson’s R= -0,399; p= 0,000 < 0,05). Once again, the values of “R” are
negative because of the coding of the data (e.g. “1” = “very important” => highest level of
importance but lowest score; “5” = “not important” => lowest level of importance but highest
score). Consequently, the more important eco-friendly farming for an interviewee is, the more
the surplus that he is ready to pay for a wine certified organic or biodynamic increases.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 49
The perception of eco-friendly products.
Table 18. SPSS Cross-tabulation & Chi² – Perception of Eco-friendly products & WTP Organic/Biodynamic Wine
Results presented in Table 18 demonstrate that there is no significant difference of WTP for
organic or biodynamic label according to the perception of eco-friendly products (Organic Label:
Pearson Chi-Square= 13,645; df= 8; p= 0,092 > 0,05 / Biodynamic Label: Pearson Chi-Square=
10,122; df= 8; p= 0,257 > 0,05). Therefore, the perception of eco-friendly products does not
affect the respondent’s WTP for an organic or biodynamic wine.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 50
The preference for purchasing eco-friendly products.
Table 19. SPSS Cross-tabulation, Chi² & Pearson’s Correlation – Preference for purchasing Eco-friendly products & WTP Organic/Biodynamic Wine
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 51
Table 19 allows to identify a significant difference of WTP, for both wine labels, according
to the level of preference for purchasing eco-friendly products (Organic Label: Pearson Chi-
Square= 30,510; df= 16; p = 0,016 < 0,05 / Biodynamic Label: Pearson Chi-Square= 31,204; df=
16; p = 0,013 < 0,05). These patterns are confirmed by the results of the Pearson’s correlations,
indeed they show that for both labels there is a moderate correlation between the WTP and the
level of preference for buying eco-friendly products. Results are once again negative because of
the data coding which is done in the opposite way (“1” => “strongly agree” => highest degree of
preference but lowest score; “5” => “strongly disagree” => lowest degree of preference but
highest score), therefore results of the Pearson’s correlations show that the more a participant
prefers to buy eco-friendly products, the more his WTP for wine certified organic or biodynamic
increases (Organic Label: Pearson’s R= -0,323; p= 0,000 < 0,05) / Biodynamic Label: Pearson’s
R= -0,325; p= 0,000 < 0,05).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 52
The purchasing frequency of eco-friendly products.
Table 20. SPSS Cross-tabulation, Chi² & Pearson’s Correlation – Frequency of purchase of Eco-friendly products & WTP Organic Wine
Results of table 20 demonstrate that there is a significant difference of WTP for the organic
wine according to the purchasing frequency of eco-friendly products (Pearson Chi-Square=
47,274; df= 16; p = 0,000 < 0,05). Indeed, most of the respondents who buy eco-friendly
products less than once a month (57,9%, 11 in 19) or less than once a year (85,7%, 6 in 7) are not
willing to pay more for a wine labelled organic. Concerning those who buy them once a month,
the opinion seems divided between “not ready to pay more” (36,4%) and “ready to pay 1 to 5%
more” (42,4%), while those who purchase this type of product at least once a week seem to
hesitate between “ready to pay 1 to 5% more” (30,3%) and “ready to pay 6% to 10% more”
(39,4%). To finish, the majority of people with the highest purchasing frequency of eco-friendly
products (“Several times a week”) are “ready to pay 6 to 10% more” (61,7%, 29 out of 47).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 53
Furthermore, the Pearson’s Correlation shows that there is significant and moderate
relationship between the WTP for organic wine and the frequency of purchase of eco-friendly
products (Pearson’s R= -0,415; p= 0,000 < 0,05). The result is negative because of the data
coding (“1” = “Several times a week” => highest frequency but lowest score; “5” = Less than
once a year/Never => smallest frequency but highest score), thus in reality the correlation is
positive. Consequently, the higher the purchasing frequency of eco-friendly products is, the
higher the WTP for having an organic wine is.
Table 21. SPSS Cross-tabulation & Chi²– Frequency of purchase Eco-friendly products & WTP Biodynamic Wine
However, concerning biodynamic wines, the Chi-Square tests presented in Table 21
demonstrate that there is no significant difference of WTP according to the purchasing frequency
of eco-friendly products (Pearson Chi-Square= 25,210; df=16; p=0,066 > 0,05). Therefore, the
frequency of purchase of eco-friendly products does not affect the willingness to pay for
biodynamic wines.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 54
The level of knowledge in the field of wines.
Table 22. SPSS Cross-tabulation & Chi²– Level of Wine Knowledge & WTP Organic/Biodynamic Wines
The Chi-Square tests of Table 22 demonstrate that there is no significant difference of WTP
for organic and biodynamic wines according to the level of wine knowledge (Organic Label:
Pearson Chi-Square= 12,447; df= 12; p= 0,410 > 0,05/ Biodynamic Label: Pearson Chi-Square=
11,805; df= 12; p= 0,461 > 0,05). Thus, the level of wine knowledge does not impact the WTP
for both types of wine.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 55
The purchasing frequency of wines.
Table 23. SPSS Cross-tabulation & Chi²– Frequency of purchase of Wines & WTP Organic/Biodynamic Wine
Results of Table 23 illustrate the fact that there is no significant difference of WTP for
organic and biodynamic labels according to the purchasing frequency of wines (Organic Label:
Pearson Chi-Square= 12,622; df= 16; p= 0,700 > 0,05 / Biodynamic Label: Pearson Chi-Square=
16,918; df= 16; p= 0,390 > 0,05). Consequently, there is no relationship between the purchasing
frequency of wines of a participant and his WTP for wine certified by one of these two labels.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 56
The frequency of wine consumption.
Table 24. SPSS Cross-tabulation & Chi²– Frequency of wine consumption & WTP Organic/Biodynamic Wine
Concerning the frequency of wine consumption, the same trends as for the purchasing
frequency of wines is observed. Indeed, Table 24 shows that there is no significant difference of
WTP according to the frequency of wine consumption (Organic Label: Pearson Chi-Square=
13,196; df= 16; p = 0,658 > 0,05 / Biodynamic Label: Pearson Chi-Square= 14,849; df= 16; p=
0,536 > 0,05). Thus, the frequency of wine consumption of a respondent does not affect his WTP
for the organic or biodynamic wines.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 57
The level of knowledge in the field of organic wines.
Table 25. SPSS Cross-tabulation & Chi²– Level of organic wine knowledge & WTP Organic/Biodynamic Wine
Thanks to the results presented in Table 25, we can admit that there is no relation between
the level of organic wine knowledge and the WTP for the organic or biodynamic wines. Indeed,
according to the Chi-Square Tests there is no significant difference of WTP for both types of
wine according to the organic wine knowledge (Organic Label: Pearson Chi-Square= 14,993;
df= 12; p= 0,242 > 0,05 / Biodynamic Label: Pearson Chi-Square= 20,672; df= 12; p= 0,055 >
0,05).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 58
The perception of organic wine.
Table 26. SPSS Cross-tabulation, Chi² & Pearson’s Correlation – Perception of organic wine & WTP Organic/Biodynamic Wine
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 59
Results of the Chi-Square Tests, presented in Table 26, show that for the two wine labels,
there is a significant difference of WTP according to the perception of organic wine (Organic
Label: Pearson Chi-Square= 48,039; df= 8; p = 0,000 < 0,05 / Biodynamic Label: Pearson Chi-
Square= 22,619; df= 8; p = 0,004 < 0,05). This indicates that the perception of organic wine
affects the WTP for the organic and biodynamic wines.
Indeed, this pattern is confirmed by the results of the Pearson’s correlations, which
demonstrate that there is, for both labels, a moderate and significant correlation between these
two variables (Organic Label: Pearson’s R= -0,476; p= 0,000 < 0,05) / Biodynamic Label:
Pearson’s R= -0,307; p= 0,000 < 0,05). The value of the correlation is negative in the table, but
this is due to the data coding (“1” = “positively” => Best perception but lowest score; “3” =
“negatively” => Worst perception but highest score). Thus the true nature of the correlation is
positive and therefore the better the participant’s perception is, the higher his WTP for wine
certified organic or biodynamic is.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 60
The level of knowledge in the field of biodynamic wines.
Table 27. SPSS Cross-tabulation & Chi²– Level of biodynamic wine knowledge & WTP Organic Wine
Table 28. SPSS Cross-tabulation, Chi² & Pearson’s Correlation – Level of biodynamic wine knowledge & WTP Biodynamic Wine
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 61
Table 27 shows that there is no significant difference of WTP for a wine certified organic
according to the level of biodynamic wine knowledge (Pearson Chi-Square= 8,504; df= 12; p=
0,745 > 0,05). Consequently, we can admit that the respondent’s level of knowledge in the field
of biodynamic wines does not impact his WTP for organic wines.
However, there is a different trend concerning the WTP for biodynamic wines. Indeed,
results of Table 28 show that there is significant difference of WTP for wines certified
biodynamic according to the level of knowledge of this type of wine (Pearson Chi-Square=
30,878; df= 12; p= 0,002 < 0,05). Besides, results of the Pearson’s correlation reveal a positive
and moderate relationship between these variables (Pearson’s R= 0,264; p= 0,000 < 0,05). Thus,
the more the level of biodynamic wine knowledge increases, the more the WTP for this wine
label also increases.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 62
The perception of biodynamic wine.
Table 29. SPSS Cross-tabulation, Chi² & Pearson’s Correlation – Perception of biodynamic wine & WTP Organic/Biodynamic Wine
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 63
Finally, Table 29 demonstrates that there is a significant difference of WTP, for both types
of label, according to the perception of biodynamic wine (Organic Label: Pearson Chi-Square=
16,015; df= 8; p = 0,042 < 0,05 / Biodynamic Label: Pearson Chi-Square= 50,577; df= 8; p =
0,000 < 0,05). Therefore, the perception of biodynamic wine seems to affect the WTP for the two
different labels. This is confirmed by the results of the Pearson’s correlations. Indeed, there is a
moderate and significant correlation between the perception of biodynamic wine and the WTP
for both wine labels (Organic label: Pearson’s R= -0,257; p= 0,001 < 0,05 / Biodynamic label:
Pearson’s R= -0,489; p= 0,000 < 0,05). The value of the result is negative, but this is due to the
data coding (“1” = “positively” => best perception but lowest score; “3” = “negatively” => worst
perception but highest score), thus the true nature of the correlation is positive. Consequently, we
can admit that the better the perception of biodynamic products is, the higher the WTP for
organic and biodynamic wines will be.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 64
Results summary
As a conclusion, results of the 172 surveys show that the sample is more or less well
proportionate in terms of gender, but there is a majority (56,4%) of young people within
participants and most of the respondents admit to have a university degree (160 out of 172).
Furthermore, the panel seems highly sensitive to ecology, given that a strong majority of
interviewees feel concerned about eco-friendly methods and products (84,3%) and positively
perceive it (86,63%), whereas only 12 people out of 172 consider eco-friendly farming as a bit or
not important. In addition, they generally prefer to buy eco-friendly (76,16%) and 113 people out
of 172 declare purchasing it weekly. Nevertheless, less than the half (80) know biodynamic
products and only 68 participants know the difference between organic and biodynamic
products. Regarding the wine, most of the people surveyed admit to buy (57,56%) and to drink
(84,31%) wine at least once a week, besides there is a good level of knowledge about this field as
80,82% of the sample have at least an intermediate level.
In regards to the organic and biodynamic wines, we notice that there is lower level of
knowledge than for the conventional wine, since a large majority of participants admit to have a
novice level of knowledge concerning these two wine labels (Organic: 70,93% – Biodynamic:
77,33%). Nonetheless, it appears that respondents have a better knowledge of organic than
biodynamic wines. Regarding the perception, the panel seems to better perceive organic wines
(66,86% of positive perception) than biodynamic (48,84% of positive perception) wines.
Besides, a large part of participants (50%) have a neutral position concerning biodynamic wines,
but it is important to notice that there are more people that perceive organic wine (2,33%)
negatively than for the biodynamic (1,16%).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 65
Concerning the willingness to pay a premium price for organic or biodynamic wines, it
appears that interviewees are more ready to pay a higher price for the organic label (72,67%)
than for the biodynamic label (66,86%). The amount of surplus, that they will be ready to pay,
tends to oscillate between 1 to 10% of the price of a conventional bottle, given that this interval
gathers 64,54% of the sample for the organic wine and 56,4% for the biodynamic wine.
However, there are more respondents who are willing to pay more than 11% of surplus for
biodynamic wine (10,47%) than for organic wine (8,14%). Furthermore, the research shows a
strong positive relationship between the willingness to pay for organic and biodynamic wines,
thus when the willingness to pay for organic wine increases the willingness to pay for
biodynamic wine also increases, and vice versa.
Regarding the influences of the different independent variables on the WTP for organic and
biodynamic wines, we observe that the variables “Gender”, “Perception of eco-friendly
products”, “Level of wine knowledge”, “Frequency of purchase of wines”, “Frequency of wine
consumption” and “Level of organic wine knowledge” do not affect the respondents’
willingness-to-pay for organic and biodynamic wine. Nevertheless, the variables “Concern of
environment”, “Importance of eco-friendly farming”, “Preference of buying eco-friendly
products”, “Perception of organic wine” and “Perception of biodynamic wine” are positively
correlated to the WTP for both labels. Consequently, the higher the level of these variables is, the
higher the WTP for the two labels is. Moreover, the same type of correlation is observed in
regards to the variables “Purchasing frequency of eco-friendly products” and the WTP for
organic wines, but not for biodynamic. To finish, while the variables “Age”, “Level of
education” and “Level of biodynamic wine knowledge” are positively correlated to the WTP for
biodynamic wines, it seems that they to do not affect the WTP for organic wines.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 66
Discussion
Comparison with results of previous studies
The number of French people who feel concerned by environmental issues and eco-friendly
methods has raised in recent years, from 66% in 2013 to 92% in 2016 (Agence Bio/CSA, 2016).
The present study also highlights that a strong majority of people (84,3%) feel concerned by the
environment and eco-friendly products. Besides, only few respondents (6,98%) consider eco-
friendly farming as being a bit or not important. Thus, we can conclude that the level of
environmental preoccupation of French people has clearly increased since 2013, but today it
seems to get stabilized around 85%. Concerning the consumption of organic products, in 2016,
69% of French have admitted to consume organic products at least once a month while they were
only 37% in 2003 (Agence Bio/CSA, 2016). The analysis of the 172 surveys highlights that
interviewees are also buying this type of products regularly, given that 84,88% of them are
purchasing eco-friendly products at least once a month. Besides, 65,7% of participants admit to
buy it every week and 76,16% prefer generally to buy this type of products instead of
conventional ones. Therefore, as the level of environmental concern, the frequency of
consumption and purchasing of eco-friendly products in France seems to be relatively high.
In the nineties, researchers have found that approximatively half of the consumers are ready
to pay more for a product with eco-friendly characteristics (Bagnara, 1995; Hutchins &
Greenhalgh, 1997; Misra et al., 1991). However, more recent studies have demonstrated that a
strong majority (around 70%) of consumers will be ready to pay more for this type of product
(Boccaletti & Nardella, 2000; Cranfield & Magnusson, 2003).
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 67
Thus, the results of the present research seem to be in accordance with the most recent
research, given that 72,67% of the sample is ready to pay more for the wine certified organic and
66,86% for the biodynamic wine. This underlines that the willingness to pay for eco-friendly
products, including wine labels, has grown in recent years.
According to the previous researches, the surplus, that consumers will be ready to pay for a
product with eco-friendly characteristics, seems to oscillate between 1 and 20% of the original
price (Bagnara, 1995; Boccaletti & Nardella, 2000; Cranfield & Magnusson, 2003; Hutchins &
Greenhalgh, 1997; Misra et al., 1991). The statistics analysis of the study demonstrates that
64,54% of participants are ready to pay 1 to 10% more for an organic wine, while only 8,14%
are ready to pay more than 10%. As regards biodynamic wine, 56,4% of respondents are willing
to pay 1 to 10%, while 10,47% are willing to pay more than 10%. Consequently, it seems that the
surplus that French consumers are ready to pay for a wine labelled organic or biodynamic is
lower than the surplus that they accept for eco-friendly products in general. These findings
underline the fact that the WTP for eco-friendly characteristics is more or less specific to each
range of products.
Furthermore, several studies find a significant difference of WTP for eco-friendly products
according to the gender, indeed it seems that men are less likely to pay a premium price for a
product with environmental characteristics than women (Boccaletti & Nardella, 2000; Cranfield
& Magnusson, 2003; Loureiro, 2003). However, the research’s results show that the gender of a
respondent does not affect his willingness to pay for both types of wine. Therefore, we can admit
that the gender of a consumer does not always impact his willingness to pay for eco-friendly
products.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 68
Concerning the influence of the age of a consumer on his willingness to pay for products
with environmental characteristics, some researchers find a greater WTP within people under 65
years old (Cranfield & Magnusson, 2003), while others find a greater WTP within people over
60 years (Misra et al., 1991). Furthermore, in France, a recent study demonstrates that young
consumers (18-24 years old) are particularly sensitive to eco-friendly arguments and
consequently are more likely to pay a premium price for a product with an environmental label
(Didier Perréol – Président de l’Agence BIO, 2017). In the present research, the results’ analysis
demonstrates that there is no relation between the age of an interviewee and his WTP for organic
wine. Nevertheless, the age seems to be positively and moderately correlated to the WTP for
biodynamic wine, thus the older the respondent is, the higher the amount of surplus that he is
ready to pay for a biodynamic wine will be. Consequently, this comparison of results allows to
highlight the fact that the consumer’s age can impact his WTP for eco-friendly products, but this
depends on the type of product and label.
Considering the relation between the level of education of a consumer and his WTP for
products with environmental characteristics, searchers seem to hesitate, given that a number of
them find a positive correlation (Cranfield & Magnusson, 2003; Jordan & Elnagheeb, 1991; Van
Ravenswaay & Hoehn, 1991) while others a negative correlation (Boccaletti & Nardella, 2000;
Buzby et al., 1995; Malone, 1990). The present results show that the level of education of a
participant is positively correlated to his WTP for biodynamic wine, nevertheless there is no
relation between the level of education and the WTP for organic wine. Thus, it seems that the
level of education may impact the WTP for eco-friendly products, but this is not valid for all
types of products and environmental labels.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 69
Finally, several studies demonstrate that the environmental concern of a consumer is
positively correlated to his WTP for eco-friendly products (Cranfield & Magnusson, 2003; Gil et
al., 2000). This trend seems to be also valid in the present research, given that results illustrate
the same type of correlation between the level of environmental concern and the WTP for
organic and biodynamic wine. Thus, we can conclude that the higher the level of environmental
of a consumer is the greater his WTP for products with environmental characteristics will be,
including organic and biodynamic wines. Therefore, the WTP for this range of products should
grow in the future, since it is positively correlated to the level of environmental concern which
continuously raises in the last years.
Impacts of the research
The survey analysis allows to highlight several patterns in the mind and behavior of French
consumers. First of all, it appears that French consumers are highly sensitive to environment.
Indeed, a strong majority of them feel concerned by environmental methods and have a positive
perception of products with eco-friendly characteristics. Besides, most of them prefer in general
to buy this range of products and do it regularly. Secondly, French people seem to be great
purchasers and consumers of wine, as they purchase wine at least once a month and consume it
at least once a week. Thus, the organic and biodynamic wine should take benefits from this two
dynamics of market.
Regarding the price, two thirds of French consumers are ready to pay more for a wine
certified biodynamic or organic. Most of them are ready to pay between 1 to 10% more for an
organic or biodynamic wine. Therefore, this difference of price shows that organic and
biodynamic labels tend to become a competitive advantage in the wine industry.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 70
However, it appears that several factors influence the willingness to pay for organic and
biodynamic wines. To start, the level of environmental concern of a consumer and the level of
importance of eco-friendly farming are positively correlated to his WTP for these two types of
label. Thus, in order to increase the WTP, it will be interesting that all operators of organic and
biodynamic wine work on a communication plan that would help to sensitize French consumers
to the environmental issues.
Moreover, the perception of both labels positively affects the WTP, therefore operators
should promote the benefits of the organic and biodynamic viticulture. This will probably help to
improve the perception of these wines and therefore the WTP.
To finish, this study shows that the more a consumer prefers to buy eco-friendly products the
more he will be likely to pay a higher price for an organic or biodynamic wine. Thus, it will be
interesting for the operators of organic and biodynamic wines, to work with other eco-friendly
operators in order to create a joint marketing policy which would push the consumers to buy
products with environmental characteristics.
Limits of the research
Results of this research present several limits at different levels, consequently they cannot be
taken literally. To start, the study is based on the analysis of 172 surveys, it is obvious that
findings which are valid within a limited sample cannot be thoroughly extended to the whole
French population. Moreover, the panel is not perfectly homogeneous in terms of age, gender
and level of education, thus results could be partially skewed because of data gaps.
Finally, the socio-demographic and behavioural characteristics of the people interviewed are
not perfectly consistent with those observed in the entire French population.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 71
For example, according to the national statistics 64,7% of French have a secondary school degree
or less (INSEE, 2017), whereas only 6,97% of the population interviewed have the same level of
education. For the wine knowledge, it appears that 55% of French consumers have a novice level
while 80,82% of the sample think to be better than novice (Le Figaro Vin, 2016). Furthermore,
87,79% of respondents admit to buy wine at least once a month, but only 51% of the French
population have the same purchasing frequency (Le Figaro Vin, 2016). Thus, results of this
research suffers from representativeness problems mainly due to the sample characteristics.
There are also some limits due to the use of a survey. To start, results of the survey are more
or less influenced by my own personality and perception, given that I have written the questions
and the possible answers of the survey. Therefore, results may be different if the questions as
well as the possible answers are expressed in a different way. Furthermore, the surveys were
anonymous so it is impossible, in these conditions, to control and ensure the veracity of
participant’s answers. Besides, the survey is constituted of a certain number of questions (22),
consequently the concentration of the respondents is going down all along the survey and this
could affect their answers’ choice. To finish, the survey is one of the tools that can be used for
determining the willingness to pay of a population. However, the fact that respondents only
estimate but do not pay a surplus for a specific product, skews the results. Indeed, if participants
have to really spend their own money, the results may be different. Thus, because of the
investigation method used, research’s results may not be totally relevant.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 72
Conclusion
The purpose of this quantitative research on the willingness to pay for organic and
biodynamic wines is to estimate the surplus of price that French consumers will be ready to pay
for a wine certified by one of these labels, and to determine if socio-demographic and
behavioural characteristics have an impact on this surplus.
Thus the literature review and the analysis of the 172 surveys of this study, demonstrate that
French consumers are highly and increasingly concerned by ecology issues. Besides, most of
them positively perceive eco-friendly products and prefer to purchase this type of products
instead of conventional ones.
Concerning the wine in general, French people seem to be great connoisseurs and
consumers, however their knowledge concerning the wine certified organic or biodynamic seems
limited in comparison. Furthermore, within the sample the perception of these types of wine
seems to be shared while the perception of eco-friendly products is clearly positive.
About the willingness to pay, it appears that French consumers are ready to pay a higher
price for a wine certified organic or biodynamic. The amount of premium price oscillates
between 1 and 10% of the price of a bottle of a traditional wine. This WTP for organic and
biodynamic wines is not affected by the gender, the perception of eco-friendly products, the level
of wine knowledge, the frequency of purchase and consumption of wines, and the level of
organic wine knowledge of a French consumer.
For both types of labels, the WTP is positively correlated to the level of environmental
concern, the importance of eco-friendly farming, the preference for buying eco-friendly products
instead of conventional ones and the perception of organic and biodynamic wines.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 73
Therefore, higher is level of these variables better will be the willingness to pay of a French
consumer. Besides, when the willingness to pay for organic wine increases the willingness to pay
for biodynamic wine also increases, and vice versa.
Moreover, the same type of correlation is observed between the purchasing frequency of
eco-friendly products and the WTP for organic wine, but not for biodynamic. Nevertheless, the
age, the level of education and the level of biodynamic wine knowledge of a consumer are
positively correlated to the WTP for biodynamic wine, while they do not affect the WTP for
organic wine.
Thus, the results of this study show that the organic and biodynamic labels tend to become
qualitative advantages in the wine market, given that consumers are ready to pay 1 to 10% more
for a wine certified by one of these labels. Knowing that French consumers are increasingly
demanding of this type of products, the future of wines labelled organic or biodynamic seem to
be bright. However, as it has been demonstrated beforehand, this research presents several limits.
But, even if the results cannot and must not be taken literally, it could and must constitute a good
base for future researches. It would be interesting to make researches on the same subject but in a
different way, as for example, another method of questioning people on their WTP or simply do
the same survey but with a different sample or even with another type of product (food, beer,
…). Therefore, these further researches will help to estimate more accurately the WTP of French
consumers for organic and biodynamic wines and to better understand what affects it.
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 74
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Appendix
Appendix A: List of control bodies and control authorities in the organic sector
(The European Commission, 2016)
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 82
(The European Commission, 2016)
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 83
(The European Commission, 2016)
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 84
Appendix B: The research “onion”
(Saunders, 2011)
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Appendix C: Survey
QUESTIONS ANSWERS
1) What is your gender ? Male Female
2) What is your age group ? 18-25 26-40 41-65 More than 65
3) What is your level of education ? Secondary school University studies 1st Cycle University studies 2nd Cycle University studies 3rd Cycle Without diploma
4) Do you feel concerned by the environment and the eco-friendly methods ?
Not concerned Neutral Concerned Strongly concerned
5) How important eco-friendly farming is for you ? Very important Important Moderately important A bit important Not important
6) How do you perceive eco-friendly products ? Negatively Neutral Positively
7) In general do you prefer to buy products which are certified eco-friendly ?
Strongly agree Agree Neutral Disagree Strongly disagree`
8) What is your frequency of purchase of eco-friendly products ?
Less than once a year/Never Less than once a month Once a month Once a week Several times a week
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 86
9) Do you know biodynamic products ? Yes No
10) Do you know the difference between organic and biodynamic products ?
Yes No
11) What is your level of knowledge of wine ? Novice Intermediate Advanced Expert
12) What is your frequency of purchase of wines ? Less than once a year/Never Less than once a month Once a month Once a week Several times a week
13) What is your frequency of wine consumption ? Less than once a year/Never Less than once a month Once a month Once a week Several times a week
14) What is the most important characteristic of a wine when you have to choose one ?
Age Grape variety Origin Price Eco-friendly Label
15) What is your level of knowledge of organic wine ?
Novice Intermediate Advanced Expert
16) How do you perceive organic wines ? Negatively Neutral Positively
17) Would you be ready to pay a premium price for having a wine certified organic in regards to conventional wine ?
Yes No
18) How much more will you be ready to pay ? Not ready to pay more Ready to pay 1 to 5% more Ready to pay 6 to 10% more Ready to pay 11 to 20% more Ready to pay more than 20% more
THE WILLINGNESS TO PAY FOR ORGANIC AND BIODYNAMIC WINES IN FRANCE 87
19) What is your level of knowledge of biodynamic wine ?
Novice Intermediate Advanced Expert
20) How do you perceive biodynamic wines ? Negatively Neutral Positively
21) Would you be ready to pay a premium price for having a wine certified biodynamic in regards to conventional wine ?
Yes No
22) How much more will you be ready to pay ? Not ready to pay more Ready to pay 1 to 5% more Ready to pay 6 to 10% more Ready to pay 11 to 20% more Ready to pay more than 20% more